Early Friday, the expiration of contracts on the DTB futures and options exchange added to the positive effect of declining government bond yields and the stronger dollar.

The official DAX stock index, which tracks prices in floor trade, jumped 21.66 to an all-time high of 2646.10 points, beating its prior record of 2629.87, set Sept. 17.

Late in the European day, the benchmark German 10-year 6.25% bond dated April 2006 was priced at 100.76 to yield 6.13%. That price was up from Thursday's at 100.52, yielding 6.17%.

Meanwhile, just after electronic trading ended, the dollar was quoted at 1.5143 marks, flat from a day earlier but up from 1.5095 marks at midday Thursday.

Munich Re posted a sharp drop, ahead of the share's Monday induction into the DAX index. The reinsurer's shares fell 97.00 marks to 3,463.00 marks. Traders said the shares had been overbought in anticipation of the change, since DAX shares are typically in demand by investors seeking to track market performance.